Press Release
Indonesian Palm Oil Association (IPOA)
Export Rises, Domestic Stock Falls
The exports of palm oil products in July 2022 reached 2,705 thousand tons, an increase of 371 thousand tons from the exports in June 2022. The increase was seen in crude palm oil (CPO) at 174 thousand tons, processed CPO at around 122 thousand tons and biodiesel at around 23 thousand tons. The export of biodiesel had been consistently rising since March 2022, which was possibly driven by rising demand as a result of the high increase of oil prices.
However, the increase of Indonesia’s exports and the increase of other vegetable oils’ supplies at the global market had pushed down the prices of vegetable oils, including CPO CIF Rotterdam which sharply decreased from US$1,507/ton in June 2022 to US$1,240/ton and at local market (FOB) from Rp10,523/kg to Rp8,322/kg.
But despite the fact, the export value of palm oil products surged from US$3.768 billion in June 2022 to US$3.800 billion in July 2022. Based on destination during June-July period, the largest export increase was seen to India at an increase of +158.4 thousand tons or from 212.4 thousand tons to 370.8 thousand tons, followed by USA at +127.1 thousand tons from 95.0 thousand tons to 223.1 thousand tons, China at +107.9 thousand tons from 416.2 thousand tons to 524.0 thousand tons and Malaysia at +103.7 thousand tons from 99.9 thousand tons to 203.6 thousand tons.
Domestic consumption was relatively normal. The consumption for local foods industry reached 937 thousand tons or 3 thousand tons higher than that in June at 934 thousand tons, while consumption for biodiesel rose from 720 thousand tons to 759 thousand tons (+5.4%).
The production of CPO in July reached 3,465 thousand tons and PKO 338 thousand tons or an increase of 5.1% from that in June at 3,297 thousand tons for CPO and 322 thousand tons for PKO. The increase of CPO+PKO production was 184 thousand tons, which was accompanied by the increase of exports, causing stock to drop from 6,688 thousand tons in June to 5,905 thousand tons in July.
Jakarta, 15 September 2022
Indonesian Palm Oil Association (IPOA)
For further information, please contact:
Mukti Sardjono
Executive Director GAPKI
